sr-042809-1jRedevelopment Agency Meeting: April 28, 2009
Agenda Item: ` "
To: Chairperson and Redevelopment Agency
From: Andy Agle, Director, Housing and Economic Development
Subject: Replacement Housing Plan for 1924 & 1930 Euclid Street, 1753 18~"
Street, and 1754 19~" Street.
Recommended Action
Staff recommends that the Redevelopment Agency ("Agency") approve the proposed
resolution adopting the Replacement Housing Plan for 1924 & 1930 Euclid Street, 1753
18t" Street, and 1754 19t" Street.
Executive Summary
FAME Apartments, LLC ("FAME") has applied for an acquisition and predevelopment
loan from City Housing Trust. Funds to finance the acquisition of the properties located
at 1924 & 1930 Euclid Street and 175318t" Street, and leasehold interests at 1754 19t"
Street; and perform predevelopment activities for future affordable housing development
on the sites. The properties are currently improved with seven (7) residential units, of
which four (4) are occupied.
Under California Redevelopment Law, Section 33413.5 (Health and Safety Code,
Section 33000 eY seq.), the Agency must adopt a replacement housing plan. when
existing units; occupied by low and moderate income households, will be removed as a
result of an Agency-assisted project. A replacement housing plan describes the
measures the Agency will undertake to provide comparable replacement housing within
four years following removal of the original units. The proposed Replacement Housing
Plan for the 1924 & 1930 Euclid Street, 1753 18t" Street and 1754 19t" Street project
has been made available to the public for review as required by .Community
Redevelopment Law.
Background
The Redevelopment Agency has previously approved replacement housing plans for
three Agency-assisted affordable housing developments. at 2411 Centinela Avenue and
1943 High Place in 2005 and 430 Pico Boulevard in 2009. Since those times, the
replacement units for the 2411 Centinela Avenue project have been completed.
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Discussion
In accordance with California Redevelopment Law, Section 33413 (a) the Agency will
meet its replacement housing obligation by implementing the following measures:
® Replacing the removed units with comparable housing within four years of
demolition; and
® Ensuring the affordability of the replacement housing units and. the occupancy by
households whose incomes are commensurate with those households previously
occupying the demolished units.
Demolition of the units at 1924 & 1930 Euclid Street, 1753 18th Street and 1754 19th
Street is anticipated to commence in 2010. The new construction project is anticipated
to be completed in 2013, well within the requirement to replace the removed units within
four years of removal of the existing units.
The replacement units are to be affordable to households at very low income levels,
which levels. shall be commensurate with or lower than the current households
occupying the units to be removed. The assumption has been made that all households
in the units to be removed are of the lowest income category, very low income.
The following table summarizes the seven units to be removed. It should be noted that
the zero-bedroom units are counted as one-bedroom units, as required by the Health
and Safety Code, for the purpose of determining the total number of bedrooms to be
removed.
Housina Units to be Removed
# of
Total # of # of very low
existing.; Unit type
bedrooms' income bedrooms
units
1924 Euclid Street 1 Single family unit 3 3
1930 Euclid Street 1 Single family unit 1 1
175318 St 4 Multi-family 6 6
Three 1-bedroom
One 3-bedroom
1754 19 St 1 Sin le family unit 2 2
Total 7 12 12
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California Redevelopment Law, Section 33413(f), allows the Agency to replace housing
units with a fewer number than removed housing units if the total number of bedrooms
in the replacement housing units equals or exceeds the number of bedrooms in the
removed units. Accordingly, FAME will be required by the Agency to replace the 7 units
containing 12 bedrooms with at least 12 bedrooms. It is important to note that the future
development is anticipated to provide all replacement. bedrooms. The zoning for the
sites allow approximately 49 affordable units. Tenants will be relocated at a later date,
pursuant to a relocation plan that ensures appropriate relocation consideration and
benefits to tenants.
Financial Impacts & Budget Actions
The recommendation does not have any budgetary or financial impacts.
Prepared by: Ava Lee, Senior Administrative Analyst
roved:
Andy Agle, Director
Housing and Econom
Attachments:
Development
Forwarded to Council:
Attachment A: Replacement Housing Plan for 1924 & 1930 Euclid Street, 1753 18tH
Street and 1754 19tH Street.
Attachment B: Agency Resolution Approving the Replacement Housing Plan for 1924
& 1930 Euclid Street, 1753 18tH Street, and 1754 19tH Street.
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Attachment A
REPLACEMENT HOUSING PLAN
For the
1924 & 1930 Euclid Street,
1753 18th Street, and
1754 19th Street Project
INTRODUCTION AND STATEMENT OF PURPOSE
The City of Santa Monica Redevelopment Agency ("Agency") is proposing to
provide financial assistance to FAME Senior Apartments, LLC ("FAME") for the
acquisition and predevelopment costs associated with 1924 & 1930 Euclid
Street, 1753 18th Street, and 1754 -19th Street: FAME. proposes to develop an
affordable rental housing project, which will entail the demolition of 7 existing low
and moderate income housing units, which are currently offered for rental to very
low income households. New construction on the sites will include 49 rental
single units affordable to low and moderate income households.
Section 33413.5 of California's Community Redevelopment Law (Health and
Safety Code; Section 33000 et seq.) requires the Agency to adopt a replacement
housing plan when it enters into certain agreements that would lead to the
destruction or removal of dwelling units from the low and moderate income
housing market.
Section 33413(a) requires that whenever dwelling units occupied by low and
moderate income households are destroyed or removed from the low and
moderate income housing market as part of a redevelopment project, the Agency
shall within four years of the destruction or removal, rehabilitate, develop,
construct or cause to' be rehabilitated, developed, or constructed, for rental or
sale to persons and families of low or moderate income at an affordable housing
cost an equal number- of replacement dwelling units containing an equal or
greater number of bedrooms as the destroyed units. Section 33413(f) permits
the Agency to satisfy its replacement housing obligation with fewer. units so long.
as (i) the total number of bedrooms in the replacement units equals or exceeds
the number of bedrooms in the destroyed units, and (ii) the replacement units are
affordable to and occupied by the same income level of households as the
destroyed units. Replacement housing units can be developed anywhere within
the Agency's jurisdiction. Per Section 33413(f)(1) of the California Community
Redevelopment Law, "destroyed or removed units having one or no bedroom are
deemed for this purpose to have one bedroom."
This Plan has been prepared to satisfy the requirements for replacement housing
under California Health and. Safety Code Sections 33413 and 33413.5.
This Plan describes the following:
1. Site location;
2. Development of the replacement housing;
3. Financing the replacement housing;
4. Schedule for the construction of the replacement housing;
5. Period for which the replacement units will remain affordable;
6. Article 34 Compliance; and
7. Availability of the Plan for public review.
DEFINITIONS
Vern-Low-Income Household
Persons and families whose gross household income does not exceed the
qualifying limits for very low income families as established and amended from
time to time pursuant to Section 8 of the United States Housirig Act of 1937.
Very low income generally is 50 percent of the area median income adjusted for
family size, as more specifically defined in Section 50105 of the California Health
and Safety Code.
UNITS TO BE REMOVED
Three single family units and four multi-family units, collectively containing 7 units
and 12 bedrooms, will be demolished.
SITE LOCATION
The sites are located at 1924. & 1930 Euclid Street, 1753 18th Street, and 1754
19t" Street in the City of Santa Monica. Exhibit 1 provides a map of the project
locations.
REPLACEMENT HOUSING UNITS
This Replacement Housing Plan describes the measures that the Agency will
take to ensure the production of 12 replacement bedrooms within four years of
the removal of those bedrooms from the low and moderate income housing
market. One hundred percent (100%) of the replacement bedrooms must be
available at affordable housing cost to, and occupied by, persons in the same or
lower income category as the very low income households displaced from the 12
original bedrooms.
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The sites will be developed with housing consisting of 49 single units, more than
a sufficient number of units to replace the 12 bedrooms demolished. All 49 units
will be affordable and restricted in accordance with Health and Safety Code
Section 33413 in order to meet the obligation to provide replacement housing,
including units affordable at the income levels of the households displaced.
Construction of housing on the site will occur within four years of the demolition
of any existing units.
The replacement housing units will provide affordable units to meet the
replacement obligations triggered by the demolition activity.
FUNDING SOURCES
The financing for the replacement housing units may include Redevelopment
Housing Trust Funds, Tax Credit Equity, and a conventional bank loan. The
Agency will require that .FAME may not proceed with demolition of the existing
units until it has secured the necessary funding for development of the
replacement units.
TIMELINE FOR REPLACEMENT HOUSING
All of the replacement units will be available for occupancy within four years of
commencement of demolition.
The anticipated project timeline includes demolition of existing structures and
commencement of new construction no later than 2012 and construction
completion no later than 2013.
LOW/MODERATE INCOME ASSURANCE
The Agency will require the recordation of a covenant against any replacement
housing units requiring at least 55 years of very low income affordability, as
required by Community Redevelopment Law.
Moreover, the Agency, in accordance with California Health and Safety Code
Section 33418, monitors on an ongoing basis, any housing affordable to persons
and families of low or moderate income developed or otherwise made available
pursuant to agreements with the Agency.
ARTICLE 34 COMPLIANCE
Authority to develop new affordable housing units under Article XXXIV is found in
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a Santa Monica voter-approved initiative adopted on November 3, 1998 known
as Proposition I which grants annual (fiscal year) authority to the City to develop,
construct or acquire low rent housing projects.
AVAILABILITY OF PLAN FOR REVIEW
In accordance with Community Redevelopment Law, a copy of this Replacement
Housing Plan will be available for review and comment by other public agencies
and the general public at the City of Santa Monica Redevelopment Agency, 1901
Main Street, Suite D, Santa Monica, CA 90405. Publication of a notice of the
Plan's availability will be given in a newspaper of general circulation a reasonable
time prior to the Redevelopment Agency's adoption of the Plan.
EXHIBIT 1
Map
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